Determine Whether the Following Transactions Involve Spot Exchange, Contracts, or Vertical

question 46

Essay

Determine whether the following transactions involve spot exchange, contracts, or vertical integration.
a.A major oil company refines gasoline from crude oil produced by oil wells that it owns.
b.Transcontinental, an interstate natural-gas pipeline, has a legal obligation to purchase a specified amount of gas per week from a well owned by Fred Smith in Enid, Oklahoma.
c.A cabinetmaker purchased a dozen wood screws from the local hardware store.
d.An electric utility purchases coal from an underground mine.

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Definitions:

Expression Of Needs

The process of making one's requirements or desires known, especially in the context of interpersonal relationships.

Save Face

To act or speak in a way that maintains one's reputation or dignity in the eyes of others, often after a mistake or embarrassing situation.

Deceive

To intentionally mislead or give a false impression to others, often to gain some advantage or hide the truth.

Divert

To change the direction or course of something, often to avoid a problem or to distract attention.